Quicky checklist:
1) Are your cables ATA100, 80 wire, cables?
2) Are they in good shape?
3) Is your power connection to the drive plugged in all the way?
4) Is the 120gb drive recognized correctly in Bios?
5) Are you formatting in NTFS through the XP disk manager?
6) Is the disk partitioned correctly?
7) Are the Drive jumper set correctly (Master/Slave not CS)
The new IDE cables are fragile things, you can damage them simply by pulling them off a drive... new cables with new drives is always a good idea.
Maxtor power connectors are notoriously stiff... make sure it's pushed all the way in.
Maxtor drives will work on Cable Select... but they seem to like the older Master/Slave method better.
If all these things are Ok... grab the diagnostics off Maxtor's website and give them a run. See if the drive passes all the tests. If it doesn't, well that's what warrantees are for...
---><font color=green>It ain't better if it don't work</font color=green><---